Many players in the electric vehicle value chain have recently faced major problems. Here at home, we’re seeing how Northvolt, Einride, Inzile, Volta Trucks, and other startups have run into major problems, and further afield, electric car companies like Fisker and Arrival have filed for bankruptcy in 2024. What’s really going on?
Arrival UK, which went bankrupt in January of this year, was previously hailed as the hope for the future of the British auto industry, thanks to its supposedly efficient production of electric vans, buses, and taxis at locally based “microfactories.” Despite a massive order for 10,000 vehicles from the package giant UPS, Arrival was unable to make ends meet. Recently, the British electric vehicle manufacturer Tevva Motors was also declared bankrupt, as was the battery manufacturer Britishvolt in 2023.
Threatened by Donald Trump?
The Wall Street Journal reported this week that at least a dozen other battery manufacturers and electric vehicle startups risk running out of money in as little as 6–8 months, even as demand for batteries and their raw materials—such as lithium—slows. Ted Brandt, CEO of the investment firm Marathon Capital, told the WSJ that an entire ”electric vehicle ecosystem is on the verge of collapse.” Until now, some players in the electric vehicle market have been supported by state and federal subsidies in the U.S. But with Donald Trump in office, new or increased tariffs on vehicles and auto parts are expected to drive up costs, while subsidies may be at risk.
